Your Answer: 55.38 Answer Question 29 (1 point) If you purchase a lot today for $21200,...

Question

Question

Your Answer: 55.38 Answer Question 29 (1 point) If you purchase a lot today for $21200, how much would the lot be worth if it

business finance

Answer 1

Answer #1

Given : present value = $21,200

Time (n) = 19

Rate (r) = 7% compounded monthly

number of compounding period (M) = 12

Future value = present value × (1+ r/m)^n×m

= 21,200 × (1+0.07/12)^19×12

= 21,200 × (1+0.0058)^ 228

= 21,200 × (1.00583333)^228

= 21,200 × 3.7665

= $79,848.97

Answer 2

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